That's a wrap! Canadian Gold Reserve Coinage Melted

I've written before about the Canadian Gold Reserve Coinage of 1912-1914 and, in fact, have another article/blog post about it from March 31, 2015 on my site. If you are interested in these coins, you should go read it, too.

The history of these pieces is fascinating, their design is fantastic and the opportunity for numismatists to purchase un-messed with, original skin, mint state gold coinage that has a traceable provenance for a century is simply amazing. Indeed, I believe most modern numismatists who pass on this opportunity are missing out on something special. Please keep in mind that this does not mean they are missing out on something that will be guaranteed to earn them money in a quick flip; rather, they are missing out on the history of coinage and the ability to obtain an FDC (fleur de coin) example of gold coinage.

My involvement with the dispersion of this group extends to being able to cherry out the nicest examples from many hundreds of pieces and then to certify all these examples in one submission at PCGS. The 100 or so pieces that I sent to PCGS were encapsulated with the gold foil insert that was replaced very quickly by the multi-color insert and is very different from the subsequent gold foil insert seen on some of these coins. Oddly enough, I did not realize that one of the characteristics of the pieces that I would handle would be that they might have been the only examples to feature this gold foil label. Please see below for an image from PCGS as to what this label looks like-

The July 20, 2015 issue of Coin World contained a front-page article titled "Canada Melts Old Coin Hoard". This was an action that had been promised ever since the announcement that the reserve would be sold. Coin World went on to publish a table with the numbers of coins that had been saved from the original reserve of approximately 245,000 pieces. It should be noted that the existence of this reserve was well known for decades and that its existence had no doubt hung over the market for many years. James Haxby wrote about this in 1983 with his work Striking Impressions: The Royal Canadian Mint and Canadian Coinage. The totals saved from the melter was as follows-

1912 $5 coins; 1,551

1913 $5 coins; 2,043

1914 $5 coins; 2,167

1912 $10 coins; 1,476

1913 $10 coins; 7,814

1914 $10 coins; 14,949

Therefore, there were 5,761 $5 gold coins saved and 24,239 $10 gold coins saved and allowed to enter into numismatic circles. Those coins sent off to be melted included 35,341 $5 gold coins containing approximately 8,550 troy ounces pure gold and an additional 179,881 $10 gold coins containing approximately 87,036 troy ounces pure gold. Unfortunately, the downward and sideways movement of gold in the months immediately following the announcement of the sale, coupled with the Royal Canadian Mint's unfathomable slowness in delivery of coins (upwards of four months after orders were accepted) meant that by the time of delivery many folks had cancelled their orders or were so annoyed at the process that the coins themselves left a poor taste in their mouths. This is a shame as not only are the coins wonderful examples of un-boinked gold, but the opportunity to obtain them from the source has now vanished. I understand that most coin collectors are not truly what I would define as numismatists, but there are still a fair number out there who study the history of coinage.

I have saved a few of these majestic pieces to be included in my own collection and I consider them part of my gold bullion holdings to be kept alongside my favorite US gold bullion coinage; Liberty eagles and half eagles. There are also a few pieces that are left and available for clients, though I do not have them currently listed on my site. It is my belief that in the years to come there will be a greater appreciation among a broad section of numismatists for these coins and that those who missed out on the original sale will strive to obtain an example for their own collections. If I were to be wrong, it would not be the first time. After all, I also believed back in 1993 that classic US commemoratives had hit bottom and would rise shortly. Ooof!